Franchise group revenue hit by 20% because of virus lockdown

Revenue for The Property Franchise Group was hit by 20 per cent cent thanks for the lockdown - but sales listings in particular have boomed since.

The Property Franchise Group has six agency brands - national lettings service Martin & Co, west country agency CJ Hole, London operation Ellis & Co, plus Whitegates serving the Midlands and north of England and Parkers operating along the M4 corridor, as well as hybrid operation EweMove.

TPFG’s annual general meeting has been told that while group revenue was down by a fifth, some lettings management service fees still rose two per cent year-on-year and there was “no noticeable impact on rent arrears and a good number of new properties being let”.

Since sales effectively ceased when the market closed for some two months, the bounce back has been significant.

TPFG says sales listings in May were four times higher than April, and exchanges last month reached 51 per cent of May 2019, despite the market being closed for part of last month. 

EweMove is “starting to achieve similar levels of sales listings to pre-lockdown”.

The company says is had net cash of £5.3m at the end of May - more than double its figure a year earlier - following deferring a VAT payment of £500,000.

“The board remains confident that the group is ultimately one of the best placed businesses in the industry to navigate the path ahead. Our strong balance sheet and robust model will enable us to take advantage of strategic opportunities as they arise, including executing on targeted acquisitions” explains Richard Martin, TPFG’s non-executive chairman.

“We have been proud to stand together with our franchisees throughout this period, providing stability alongside continued advice and support. I would like to take this opportunity to thank them again for their incredible hard work and tenacity."